Amazon to get iRobot, maker of Roomba vacuums

A vacuuming Roomba product robot is shown at iRobot headquarters in Bedford, Massachusetts

Scott Eells | Bloomberg | Getty Pictures

Amazon is attaining iRobot for $61 a share, an all-cash deal that values the Roomba maker at $1.7 billion, the businesses declared Friday.

The offer will deepen Amazon’s existence in customer robotics. Amazon built a bold wager on the room previous yr when it unveiled the Astro property robotic, a $1,500 system that’s equipped with the company’s Alexa electronic assistant and can comply with customers close to their property. It truly is also introduced an array of good house gadgets, like Ring doorbells, as nicely as voice-activated thermometers and microwaves.

“Above lots of yrs, the iRobot team has confirmed its capability to reinvent how persons thoroughly clean with merchandise that are extremely functional and creative — from cleansing when and where clients want even though keeping away from prevalent hurdles in the dwelling, to immediately emptying the selection bin,” reported Dave Limp, Amazon’s components devices main, in a assertion. “Customers really like iRobot merchandise — and I am fired up to perform with the iRobot team to invent in approaches that make customers’ life a lot easier and much more pleasant.”

The acquisition marks Amazon’s fourth-biggest offer, driving its $13.7 billion buy of grocery chain Complete Food items in 2017, its $8.45 billion invest in of film studio MGM final year, and its $3.9 billion acquisition of boutique primary-care company One particular Professional medical, announced past thirty day period.

iRobot, founded in 1990 by Massachusetts Institute of Engineering roboticists, is very best identified for building the Roomba, a robotic vacuum launched in 2002 that can cleanse consumers’ flooring autonomously. Considering that then, it has released robotic mops and pool cleaners. iRobot also has a subscription system that presents automatic machines replenishment, among other providers.

Amazon is shopping for iRobot at a time when the robotic maker is experiencing wide headwinds. The enterprise introduced second-quarter final results on Friday that confirmed a yr-above-year decline in revenue, mainly owing to “unanticipated purchase reductions, delays and cancellations” from shops in North The united states and Europe, the Middle East and Africa.

iRobot explained it would cut about 140 personnel, or 10% of its workforce.

After the offer closes, iRobot CEO Colin Angle will keep on to operate the company.

Shares of iRobot surged more than 18% in premarket investing, following they ended up briefly halted next the announcement of the deal. Amazon’s stock was down about .5%.

Check out: Amazon to purchase A person Medical for roughly $3.9 billion

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